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Blockchain fixes misuse of biometric data — Privado ID founder

Because biometric data cannot be replaced, storing the data requires the highest levels of security, Evin McMullen told Cointelegraph.

Biometric data collected by the tech industry introduces multiple risk vectors to end users and imposes massive costs on tech companies.

Evin McMullen, co-founder of Privado ID — a decentralized identity project that uses zero-knowledge cryptography — recently explained to Cointelegraph explain how decentralized blockchains mitigate these risks.

McMullen began by pointing out that biometric data isn't just processed or stored through traditional Big Tech companies like Google, Apple, or Microsoft. Instead, the data often passes through a complex supply chain of service providers that opine on the validity of certain pieces of data, which exposes user data to multiple third parties. The Privado ID co-founder stated:

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Bitcoin price probably ‘chops’ between $100K to $100K range until FOMC meeting

Decentralized ID is the next ‘killer’ Web3 use case: Cardano sustainability lead

Blockchain needs more non-speculative use cases to onboard the next billion mainstream users.

Decentralized identity (ID) solutions could be the next blockchain use case to onboard the next wave of mainstream adopters, according to Cardano’s sustainability lead.

Speaking during a panel discussion at the Web3 Corporate Innovation Day, Cardano’s Alexandre Maaza said blockchain technology still lacks robust use cases to attract the next generation of blockchain adopters.

However, the emergence of blockchain-based decentralized identity solutions could provide the next “killer” use case to attract millions of new users. Maaza said the Cardano Foundation believes that Web3 still lacks a “killer, scalable use case” that is relevant for businesses and people:

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Bitcoin price probably ‘chops’ between $100K to $100K range until FOMC meeting

Italy’s central bank calls for framework to prevent stablecoin runs

Bank of Italy is calling for closer regulator scrutiny of stablecoins, which they say “have not proved stable at all.”

Italy’s top banking authority has called for a “robust, risk-based” regulatory framework for stablecoins, which could help prevent a worst case scenario — a “run” on stablecoins.

The central bank’s recently released Markets, Infrastructures and Payment Systems report for June 2023 has called on regulators to apply the same financial conduct standards to stablecoin issuers in the industry.

The bank said the rise of cryptocurrencies, coupled with several “boom and bust cycles” in a largely unregulated environment has caused “significant consumer harm.”

Regulatory attention on stablecoin issuers in particular should be a priority because of its close connection to DeFi, the bank said:

“A robust, risk-based regulation of stablecoins ensuring the prevention of ‘runs’ on their issuers is a necessary condition to reduce the fragility of the DeFi ecosystem, given the prominent role of this asset class in decentralized finance.”

“It is crucial that policy interventions on stablecoins and DeFi are well synchronized since the diffusion of stablecoins [...] is likely to spur new waves of DeFi innovation and increase the interconnection between traditional and decentralized finance,” it added.

The Italian banking authority also noted that stablecoins “have not proved stable at all” — citing the most notable collapse of Terra’s algorithmic stablecoin TerraClassicUSD (USTC) in May 2022.

The bank said the industry also needs to debunk “the decentralization illusion” by acknowledging that most decentralized protocols are operated by core stakeholders who can often “extract ownership benefits.”

“Such projects should be brought back to traditional, accountable business structures as a pre-condition for operating in the regulated financial sector,” the bank added.

Related: OpenAI’s ChatGPT reenters Italy after obliging transparency demands

The bank however stressed that it isn’t necessary to subject every crypto asset or activity to financial services regulation:

“Not all crypto activities and not all forms of crypto-assets need to be covered or should be covered by financial sector regulation, in particular where their issuance, trading and holding do not serve customers’ financial needs through a payment or investment function.”

Among the non-financial use cases enabled by blockchain are decentralized identification, real estate, supply chain, voting and carbon credits.

Italy’s central bank has also called for countries to cooperate and establish an international regulatory framework because the technology operates irrespective of nation state borders.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Bitcoin price probably ‘chops’ between $100K to $100K range until FOMC meeting